Thank you for visiting our complete guide on the best way to invest in gold and other precious metals. In this guide, we will help you learn how to buy gold like a pro. We will explain why you should invest in gold and whether you should invest in physical gold, futures options EFT’s, gold mining stocks, gold funds, or gold IRAs.
Let us jump straight to the topic of why you are here: To learn the best way to invest in gold.
The best way to invest in gold is by owning physical gold, and in this guide, we will explain why. If you want to jump straight to the reasons why you should invest in physical gold, click here.
That said, we will also cover the different options for gold investing, such as futures options EFT’s, gold mining stocks or funds, and gold IRAs so that you will have all the information you need to make the right investment decision for the future.
Before we dig in deeper, we want to say: What a tumultuous year it has been…
With Brexit, negative bond yields, a global trade war, an oil price crash, and a worldwide pandemic this is expected to be the worst recession since the Great Depression.
That being the case, savvy investors have always been aware of the importance of owning physical gold as part of a well-balanced and diversified portfolio, and you should too.
Physical gold is a world-renowned safe haven for investors offering the ultimate insurance and protection against turbulent economic times.
And as mentioned earlier, these turbulent economic times are already here with the coronavirus pandemic and its devastating effects on the world’s economy.
The inflation rate has already increased to 5.4%, and it does not seem to go down any time soon. Quite the opposite!
It is now time to protect your assets, and with this guide, we will help you learn how!
If you want to jump straight to any section, you can use the overview below:
You should invest in gold because gold does not only protect your portfolio from the volatility of the markets, but is also setting it up for significant future growth.
Like J.P Morgan says:
This means that in times of economic uncertainty and instability, buying gold makes more sense than other assets since gold is no one’s liability and carries no counterparty risk. It is a tangible asset that will stand the test of time.
Therefore, physical gold and other metals should be an essential part of your investment portfolio. They serve as financial insurance and a hedge against inflation and currency risk.
Trevor Gerszt, founder of Goldco means:
“Precious metals should not be seen as an investment, but as financial insurance.”
Historically, gold moves in the opposite direction of traditional securities like stocks, bonds, and mutual funds. When the stock market goes down, the price of gold and silver tends to rise.
For this reason, gold has proved to be a successful preserver of wealth throughout times. High gold prices and record demand, have ensured that it has outperformed most other forms of investments.
And as a highly precious metal, gold’s worth is recognized internationally and is considered a valuable luxury no matter where you are in the world.
With that being the case, a gold investment should be viewed primarily as a low-risk security asset.
So if you are looking to minimize risk, diversify your portfolio, and safeguard your wealth during times of heightened volatility, you should turn to precious metals.
The combination of these factors means that adding gold to a portfolio can enhance risk-adjusted returns. That said, let us take a look at the increasing demand for gold and why that is next.
Small gold bars and gold coins accounted for approximately two-thirds of the annual investment in gold. As well as around one-quarter of the global gold demand over the past decade.
Demand for bars and coins has quadrupled since the early 2000s and the trend covers both the East and the West – World Gold Council.
The coronavirus outbreak was the single biggest factor influencing the gold demand. And as the scale of the pandemic and its potential economic impact started to emerge, investors sought safe haven assets.
Now, let us move on to the main topic of this guide: Whether you should invest in physical gold, future options, gold mining stocks, or funds. We will start by taking a look at physical gold.
When it comes to paper gold vs physical gold, the advantage of actually being able to take delivery of physical gold coins or bars is enormous.
Physical gold is a timeless asset that will always have value and always lasts the test of time. Holding physical gold bars and gold coins provides the ultimate control and insurance for your wealth against financial crisis in an underperforming wider economy.
For instance, it is possible for a stock to go to zero, for a bond to default, for a currency to lose its value, but gold will never be worth zero.
For this reason, investing in a gold IRA is a method that is becoming more and more popular. With a gold IRA, you get to own physical gold coins or gold bars, while still enjoying the same tax advantages as a conventional IRA.
And when it comes time to take a distribution, you can choose to either receive cash or take possession of your gold coins or bars. For more details, please visit our gold IRA guide.
These indirect forms of investing in gold are much riskier than the physical metal. In fact, physical gold offers you that layer of protection and security, which EFTS (Gold Exchange Traded Funds) do not. A gold ETF is an exchange-traded fund with gold being the principle and the only commodity being traded.
Similar to the banking crisis, ETF companies are vulnerable, unpredictable, and controlled outside your hands, so investing in an ETF that owns gold stocks is a higher-risk way to play. Also, the management fees on your holdings will add up. And in practice, this can have much the same effect as inflation.
If you do not want to purchase physical gold, you can always look to gold mining stocks. But keep in mind that gold stocks do not necessarily move in concert with bullion prices since mining companies succeed or fail based on their individual operating performance. As well as how they deploy their capital and generate profits.
If you like the profit potential of gold mining stocks, but do not want to buy individual companies, you can invest in gold funds instead.
However, be aware that gold stocks rise and fall faster than the price of gold itself. As a result, you do not have the security of physical possession of the metal if the companies you buy are unsuccessful. With physical gold bullion, this would not affect you directly as you are not relying on any third-party individual or company to look after your wealth for you. Instead, you are in control of your own wealth.
It goes without saying:
Whether to invest in gold coins or gold bars depends on your individual investment goals and situation. That said, gold bars are the largest and most efficient way to purchase and store large amounts of gold. They are usually also the most cost-efficient because they have the smallest premium over the gold spot price and the lowest markups for design and transportation. Also, they are easier to stack and more difficult to counterfeit.
Gold coins are smaller and more convenient than gold bars, but they are also more difficult to store because they are easier to lose. For this reason, gold coins are less efficient than bars for holding large amounts of metal. And some of them may come with a higher premium over spot since they can be marked-up for design or rarity.
However, gold coins are more useful for people who intend to use their gold as money. For maximum liquidity, investors tend to stick with the most widely circulated gold coins, including the South African Krugerrand, the American Eagle, and the Canadian Maple Leaf.
For more details, you can find a list of IRA-approved gold and silver bullion here.
What is more, prudent gold investors ensure that they pay the lowest costs to purchase their gold, and are able to sell it quickly and easily for the full value when they want to.
You can rest assured that there will always be bullion dealers who are willing to buy your gold instantly over the telephone. In just a few minutes, you can realize the value of your gold and get a bank transfer or instant cash payment the very same day.
|For instance, both gold investment companies, Regal Assets and Goldco , will buy back your precious metals any business day of the week, and have funds in your possession within 24 hours of a sale.|
The question whether it is better to invest in gold or silver is often on new investors’ minds. It is first of all important to remember that gold and silver have their own advantages and disadvantages.
Ultimately, your decision to invest in gold or silver will depend on which metal better suits your investment needs. And many investors decide to invest in both gold and silver.
Investing in gold has the advantage of long-term price stability and unparalleled wealth protection. On the other hand, silver has the advantage of higher potential gains.
In fact, silver quadrupled in price after the 2008 recession, while gold only tripled in price.
Also, some investors like the feeling of getting something for their money when buying silver. While $50,000 in gold can fit into your pocket, $50,000 in silver will fill many Priority Mail shipping boxes. So the sheer amount of silver can make some investors feel rich.
In addition, you should not forget that you have the option to invest in four different precious metals: gold, silver, platinum, and palladium. We will dig deeper into these metals in section: The 4 best precious metals to invest in right now).
With that said, how much gold should you invest to achieve maximum benefit, you may ask?
According to the portfolio allocation analysis (based on the seminal work of Richard and Robert Michaud) investors who hold between 2% to 10% of their portfolio in gold can significantly improve their performance.
This is also true when assuming a conservative average annual gold return of a modest 2% to 4%, which is well below its actual long-term historical performance.
So investing as little as 2% to 10% of your total portfolio will set your portfolio up for significant growth, as well as offer you financial insurance and hedge against inflation.
The liquidity of your precious metals investments will depend on what form of precious metals you invest in. But in general, gold and silver are highly liquid.
In fact, gold and silver are traded 24/7 around the world. And the investor markets for gold coins and bars are highly active. You can rest assured that you will always be able to find a willing buyer for your precious metal investments.
Today, the demand for gold and silver is so high that many investors cannot find enough gold and silver coins. Some mints around the world had to shut down their operations temporarily as a result of their workforces contracting the coronavirus, which has had the effect of further spurring demand.
Everyone wants to get their hands on gold and silver coins while they still can and before prices rise any further.
For instance, when investing in a precious metal IRA and you want to take a distribution, you can take possession of your precious metals.
And aside from potentially having to sell a portion of your assets to cover any taxes you may owe, this means that you will not necessarily have to worry about liquidating a huge portion of your precious metals.
We cannot state enough how important it is to choose a reputable gold dealer. It can make all the difference, both when it comes to credibility and reassurance. As well as when assessing the vital elements that can affect your investment return such as coin selection and tax-efficiency.
It is of paramount importance to do proper due diligence before transferring your hard-earned money from your bank account. More importantly, because gold is an expensive purchase, one bad transaction can cost you a lot of money.
Reputable gold investment companies, like Goldco, Regal Assets, and BullionVault will be able to help both experienced investors, looking for diversification, as well as those looking to own gold for the first time. Your dealer should be able to offer options such as tax-free gold, pension gold (gold IRA), a buy-back program, and so forth.
Step 1. Research The Internet
The internet is the best place to conduct your research. The internet holds information about the impartial experiences, opinions, and recommendations of millions of people all around the world. Simply use the Google giant, and type in the company or brand name to see what comes up.
Step 2. Research Customer Reviews
The internet is the world’s largest open forum in which companies have no control. It will quickly become apparent if a gold bullion dealer has a negative online reputation, in which case they should be avoided at all costs.
The best way is to research what other customers are sharing about their experiences on independent third party review sites like TrustLink or TrustPilot. Also, an effective way to identify credible reviews is to type the bullion dealer’s brand name into Google search followed by the word ‘reviews’. For example, ‘Goldco reviews or Regal Assets reviews’. And anything below 4.7 out of 5 would require some serious further investigation.
Step 3. Trust Your Gut Feeling
After speaking to a gold bullion dealer, you should feel certain that they have your best interest in mind. Be alarmed if they recommend investing all your assets into precious metals. The whole idea is to diversify your assets. Also, your gold dealer should consider your long-term investing goals and recommend the best solution for you.
There are three primary options for storing your gold bullion:
Option 1. Take Physical Possession
First of all, you can take personal custody of your bullion. If you choose this option, you will need to store it in a safe place, somewhere it is unlikely to get stolen or be destroyed by fire or some other disaster.
Furthermore, make sure to insure your gold. You can do this easily with your homeowner’s insurance policy to provide coverage in the event of a loss.
Option 2. Storage With The Gold Dealer
Second of all, you can store your gold with the gold dealer you bought it from. For example, Goldco and Regal Assets charge $0 for storage for non-IRA transactions.
Option 3. Open a Gold IRA Account
Third of all, a self-directed gold IRA will allow you to hold bullion in your retirement account with the same tax advantages as a conventional IRA. Setting up a gold IRA is a specialized process, and you will need to find an IRA custodian that specializes in this practice.
» Goldco specializes in gold & precious metals IRAs.
» Regal Assets specializes in alternative assets IRAs, where you can add cryptocurrencies to your portfolio, as well as precious metals.
You should invest in a gold IRA because it allows you to diversify any portion of your retirement portfolio — including pre-existing IRAs and former 401k(s) with previous employers — by actually owning physical metals within that retirement plan.
By investing in gold and other precious metals through a gold or precious metals IRA, you can rest assured that your assets are safe and secure. You do not have to worry about a possible stock market crash or inflation, where your paper assets would lose their value.
Investors can securely possess physical precious metals in a tax-deferred account.
To begin the process of opening a gold or precious metals IRA is simple, especially when you partner with precious metals experts who know the ins and outs of this type of IRA.
Let us show you the easy 4 steps when opening a gold IRA.
1. Select Your IRA Plan
To invest in precious metals you have to start with a self-directed IRA. As an investor, you can begin a new IRA account, or roll over from an existing retirement account. It is key to speak with a tax advisor and precious metals expert to make sure that you follow regulations and that any retirement accounts you currently hold are eligible for a gold IRA transfer or rollover, or other precious metals IRA.
2. Select A Precious Metals Custodian
Gold IRA assets need to be stored with a custodian per IRS regulations. Working with precious metals investing experts, like those at Goldco or Regal Assets, will help you find a custodian experienced with gold IRA investing to make sure your self-directed IRA is set-up correctly.
3. Select Your Precious Metals
When choosing precious metals, it is important to remember that they need to meet certain IRS rules and regulations to avoid retirement mistakes when investing. Working with a precious metals specialist will ensure that you are choosing the right types of gold and other precious metals.
4. Purchase Precious Metals
After you choose your desired metals as an investment, you can purchase your gold and work with your custodian to store it. The custodian will keep your assets safe and secure at a bullion depository so that they are there when you need them.
While everyone is familiar with gold and silver, they often overlook the other precious metals, those in the platinum group: ruthenium, rhodium, palladium, osmium, iridium, and platinum.
So what is the best metal to invest in right now?
There is a reason people refer to certain benchmarks as a “gold standard” – because gold is the object against which every other good has always been valued. Gold’s ability to maintain its value over time is legendary. Just look at the difference between a $20 gold piece and its contemporary $20 bill. That $20 bill is still worth $20, while the $20 gold piece will net you over 80 times that much.
More so, gold is not just a source of stability or diversification for an investment portfolio. It is also a source of potential wealth appreciation. For instance, in the aftermath of the 2008 financial crisis, the price of gold nearly tripled in value.
Those who want to protect their tax-advantaged retirement accounts can even take advantage of a 401(k) to gold IRA rollover to invest in gold. A gold IRA allows owners of tax-advantaged retirement accounts such as a 401(k), 403(b), TSP, IRA, or similar account to roll over those funds into an IRA that invests in precious metals such as gold.
The gold IRA offers the same tax advantages as any conventional IRA, but with the added protection that an investment in physical gold coins or bars can offer.
All that glitters is not gold, as silver investors know well. While silver often plays second fiddle to gold, it is an important metal in any investor’s portfolio. During precious metal bull markets, silver’s gains can often outstrip those of gold. After the 2008 crisis silver quadrupled in price while gold only tripled.
The silver price and market are different than that of gold because silver is much more heavily used in industry than gold. Roughly half of all demand for silver comes from industry, whether it is from electronics, dental equipment, or increasingly the solar panel industry. For this reason, the industrial demand for silver is forecasted to increase.
Read more about the benefits of silver in:
Like gold, silver can be invested in through an IRA. A silver IRA allows investors to hold silver in an IRA and enjoy all the same benefits of a tax-advantaged retirement account, while simultaneously investing in physical silver coins or bars.
Platinum is the third-most-popular precious metal among investors today. Platinum’s history is not as long as that of gold even that the metal has existed for millennia.
Roughly half of platinum produced today is used in automotive catalytic converters, its primary industrial use. A large portion of platinum is used in jewelry. The remainder is used for electronics and in various other industries that need platinum’s resistance to corrosion.
The platinum price has been more volatile than gold recently, largely due to falling industrial demand from the automotive industry. Over 80% of today’s platinum production comes from South Africa which may lead to fears of supply disruption.
However, that also means that in the event of a disruption, the platinum price should rise significantly.
That said, it is hard to imagine platinum becoming any cheaper than it already is. Years from now investors may look back and kick themselves for not investing in platinum when they had the chance.
Only discovered in the early 19th century, and once of limited use primarily in jewelry, palladium has rocketed in price in recent years. Like its sister, platinum, palladium finds one of its primary uses in the automotive industry in catalytic converters.
Recent supply disruptions have caused the palladium price to skyrocket, reaching over $2,500 at one point in early 2020. Even though the price has fallen back below $2,000, palladium is still more valuable than gold, at least for now.
On a final note, we want to give you something important to consider: The power and freedom precious metals offer.
Gold and silver have been the money formula for thousands of years. Because investors are allowed to hold their precious metals outside of the financial system, it gives them some level of power, liberty, and freedom. Much of the world relies on a debt-based Fiat Ponzi scheme and metals protect investors from this.
More so, precious metals are a separate asset class from stocks and bonds and are partially uncorrelated, which means that they have their own unique risks and opportunities.
Gold should be the most essential part of your investment portfolio since it is a form of financial insurance and inflation and deflation hedge. Gold protects you from currency risk, stock market volatility, the grip of the financial system, etc.
Just a small allocation of precious metals 2% to 10% could add a significant amount of protection to your portfolio if things get ugly in the financial markets.
There will always be a great demand for physical gold and silver but, unfortunately, there is a limited supply, which is why investors are flocking to get hold of the yellow metal while they can.
Learn everything you need to know about owning physical gold in an Individual Retirement Account, 401(k) rollover and transfer rules, the best gold IRA companies, etc.
Learn what the difference between a gold IRA rollover and transfer is, what are the rules and regulations, how to store your IRA gold, when you can take physical possession of your gold, etc.
Because gold serves as a hedge against inflation and deflation, currency risk, stock market volatility, etc. Gold is a store of value and should be seen as financial insurance. It is possible for a stock to go to zero, for a bond to default, for a currency to lose its value, but gold will never be worth zero.
Historically, gold moves in the opposite direction of traditional securities like stocks, bonds, and mutual funds. When the stock market goes down, the price of gold and silver tends to rise. If you are looking to minimize risk, diversify your portfolio, and safeguard your wealth during times of heightened volatility, you should hold physical gold.
The coronavirus (Covid-19) outbreak was the single biggest factor influencing gold demand. As the scale of the pandemic and its potential economic impact started to emerge, investors sought safe haven assets. Stock markets have already taken a huge hit from the coronavirus. The S&P 500 has fallen farther quicker than it did during the Great Depression, and since we are still in the early stages of a shutdown, markets can only fall further from here. Gold has protected people through thick and thin for centuries, and it will not be any different this time around. No matter how bad the coronavirus epidemic gets, gold will continue to work and be a safe investment.
“Market risk and uncertainty are long term drivers of the price of gold, our expectation is we are going to continue to face one of those two factors.” – Joseph Cavatoni, Managing Director of the World Gold Council. Cavatoni is indicating that the price of gold is going to continue to rise, and this is just the start. This pandemic will eventually end, but its effects on the economy will be long-lasting. In uncertain times, it is important to turn to safe-haven investments to protect and grow your wealth. Now is the time to invest in gold and precious metals.
Indirect forms of investing in gold are much riskier than physical metal. You are relying on any third party individual or company to look after your wealth for you, and depending on the company’s success or failure, you risk losing your investment. With physical gold, you are in control of your wealth. Physical gold offers you that layer of protection and security which Gold Exchange Traded Funds (ETFs), gold mining stocks and funds do not.
When investing in a gold IRA, you will get the same tax benefits as a traditional IRA, while actually owning physical gold coins or gold bars.
It depends on your individual investment goals and situation. Gold bars are the largest and most efficient way to purchase and store large amounts of gold. They are usually also the most cost-efficient because they have the smallest premium over the gold spot price and the lowest markups for design and transportation. They are also easier to stack and more difficult to counterfeit.
Gold coins are smaller and more convenient than gold bars but they are also harder to store because they are easier to lose. Gold coins are less efficient than bars for holding large amounts of metal and some of them may come with a higher premium over spot since they can be marked-up for design or rarity. However, gold coins are more useful for people who intend to use their gold as money.
Ultimately, your decision to invest in gold or silver will depend on which metal better suits your investment needs. And many investors decide to invest in both gold and silver. Investing in gold has the advantage of long-term price stability and unparalleled wealth protection. Silver has the advantage of higher potential gains. Silver quadrupled in price after 2008, while gold only tripled in price.
No, gold and silver are traded 24/7 around the world, and investor markets for coins and bars are highly active. You will always be able to find a willing buyer for your precious metal investments. A reputable gold dealer always has a buy-back program that offers a better deal than a local coin dealer.
Gold, silver, platinum, and palladium ranked in the given order. Find an explanation as to why in our gold investing guide.
If you are buying precious metals outright, you can store it at home or anywhere you find a fit. Be sure to store it in a safe place, somewhere it is unlikely to get stolen or be destroyed by fire or some other disaster. Do not forget to insure your gold.
You can also store your metals with the gold dealer you bought it from. Goldco and Regal Assets charge $0 for storage for non-IRA transactions.
With a gold IRA, you can hold bullion in your retirement account. Whichever metals you choose will be safely secured in an IRS-approved depository and ready for you to use as soon as you retire.
Traditional IRA accounts may not be enough to provide for you and your loved ones post-retirement. Not if the economy continues spiraling out of control at this magnitude. Investors are hungrier than ever for diversification, tirelessly searching for security and protection. They are looking for IRAs that will not disappear if the dollar does.
The only secure financial asset that has stood the grueling test of time is gold. A gold IRA permits individuals to diversify any portion of their retirement portfolio — including pre-existing IRAs and former 401k(s) with previous employers — by actually owning physical gold and other precious metals within that retirement plan. Investors can securely possess physical precious metals in a tax-deferred account.
Goldco is the leading provider of precious metals IRAs and its IRA & 401(k) rollovers are easy and painless. They pride themselves in customer service and the ability to help individuals diversify their retirement accounts. Goldco has an A+ rating by the BBB, and Inc. magazine ranked Goldco the 528 in its 35th annual Inc. 5000, a list of the nation’s fastest-growing private companies. With Goldco, any investor can buy precious metals outright, even if they specialize in gold IRAs (precious metals IRAs). Read the full review of Goldco Precious Metals in section: Best Gold Companies.
Regal Assets aimed for being the world’s best one-stop-shop for tangible precious metals investing and fulfilled its goal with flying colors. Regal Assets achieved the status of being the #1 rated alternative assets company 10 years in a row and was ranked #20 best firm in the U.S. by Inc. 500. In November 2019 Regal Assets joined forces with Coinbase and Kingdom Trust. This dynamic new partnership enables Regal to offer the #1 crypto IRA in the market, called Regal IRA. Read the full review of Regal Assets in section: Best Gold Companies.
Best Gold IRA Companies – There has never been a better time to invest in gold than today. With the ease of setting up a gold IRA or crypto IRA, you can go from worrying about your retirement savings to complete confidence in the security of your wealth. But choosing the right precious metals company to invest with can be extremely difficult unless you know what to look out for.
When reviewing gold IRA companies it’s critical to compare the ratings and reviews by looking at independent authority sources. We look at the scores given by using 5 independent rating sources that include the Better Business Bureau, Business Consumer Alliance, TrustLink, TrustPilot, and Ripoff Report.
Please feel free to reach out if you have any questions about the content of this website. If you believe something is explained incorrectly, please send us an email at [email protected].
|Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase.|
Our mission is to provide investors and retirees all the information they need when it comes to precious metals and cryptocurrency investing. We aim to provide a complete guide on the best ways to invest in gold, silver, and crypto.
We believe that investing in precious metals and cryptocurrencies through your IRA or 401(k) is one of the best ways to invest in this asset class, due to the tax-saving component. A gold or crypto IRA is the best way to protect your retirement account and adds financial insurance.
Whether you are interested in gold coins, pure minted bars, EFTs, or gold mining stocks, you will find the information you need on this website to get started on the right foot.